TJX leverages strong supplier relationships to secure diverse, branded merchandise at low costs. This allows them to offer compelling value, driving consistent customer traffic.

↑Agile Inventory Management

Their ability to quickly acquire and sell opportunistic inventory provides a competitive edge. This flexibility ensures fresh, desirable products are always available.

↑Customer Traffic Momentum

Recent broad-based sales gains driven by rising customer traffic indicate strong brand loyalty and value perception. This sustained engagement fuels continued growth.

INVESTMENT RISKS

↓Economic Skepticism & Consumer Caution

Widespread economic skepticism in 2026 may lead to cautious consumer spending. This could impact discretionary purchases, even at value prices.

↓Merchandise Availability Fluctuations

While currently strong, future merchandise availability could be impacted by supply chain disruptions or shifts in brand strategies. This could affect their core value proposition.

↓Intensifying Retail Competition

The retail landscape remains highly competitive. Other players may adopt similar value-driven strategies, potentially diluting TJX's unique appeal.

Base case

TJX base case PE valuation

A base case PE valuation for TJX estimates a fair value of about $199.2 per share, against a current price of $168.41. The model assumes 10.3% annual earnings growth, a 33x target PE multiple, and a 10% discount rate.

Intrinsic Value

$199.2

Margin of safety

+15.5%

Expected annual return

+3.4%

Base case assumptions: 10.3% annual earnings growth, 33x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.

This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.

Customize the TJX PE valuation

Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The TJX Companies, Inc. respond.

Open PE Calculator for TJX

Or try DCF Valuation for TJX →

Company Overview

The TJX Companies, Inc., alongside its various associated businesses, functions as a major discount retailer focusing on clothing and household decor. Its operations are organized into four primary divisions: Marmaxx, HomeGoods, TJX Canada, and TJX International. The enterprise markets an extensive selection of goods, including clothing for all family members (such as shoes and complementary items); a broad array of home furnishings and accessories (ranging from essential household goods, furniture, floor coverings, and lighting fixtures to gift items, soft textiles, decorative pieces, dining wares, and kitchen utensils), alongside growing departments for pet supplies, children's products, and gourmet foodstuffs. Jewelry, additional accessories, and various general merchandise are also available. By the close of February 23, 2022, TJX maintained a considerable retail network across several continents. In the United States, this footprint included 1,284 T.J. Maxx, 1,148 Marshalls, 850 HomeGoods, 59 Sierra, and 39 Homesense physical stores, complemented by online portals like tjmaxx.com, marshalls.com, and sierra.com. Its Canadian presence featured 293 Winners, 147 HomeSense, and 106 Marshalls outlets. European consumers could visit 618 T.K. Maxx and 77 Homesense locations, with an e-commerce option at tkmaxx.com. Furthermore, Australia hosted 68 T.K. Maxx establishments. Established in 1962, the firm's corporate headquarters are located in Framingham, Massachusetts.

Financial Metrics — TJX PE Stock Valuation Data

PE Ratio (TTM)

32.6x

PEG Ratio

1.56

Earnings Yield

3.07%

ROE (TTM)

59.7%

Revenue/Share (TTM)

$54.99

Dividend Yield

1.04%

Debt/Equity

1.36x

Frequently Asked Questions

What is the PE ratio of TJX?

The trailing twelve-month PE ratio of TJX reflects how much investors pay per dollar of The TJX Companies, Inc.'s earnings. This metric is most useful when compared to Apparel - Retail peers and the company's own historical range.

Is TJX overvalued based on PE ratio?

TJX's PE of 32.6x combined with a PEG ratio of 1.56 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Apparel - Retail, a DCF analysis may be more appropriate.

How do I value TJX stock using PE ratio?

To value The TJX Companies, Inc. using PE: (1) Compare the current PE (32.6x) against the Apparel - Retail median to assess relative pricing, (2) check the PEG ratio (1.56) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.

What is the PEG ratio of TJX?

TJX's PEG ratio is 1.56, calculated by dividing the PE ratio (32.6x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. Note that PEG accuracy depends on the reliability of growth estimates.

Should I use PE ratio or DCF for TJX stock valuation?

PE ratio gives a quick relative read — how TJX is priced versus Apparel - Retail peers. DCF provides an absolute value based on projected free cash flows. For TJX, with a strong ROE of 59.7%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.

Learn More

See TJX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
PE Methodology — Step-by-step guide to PE ratio stock valuation
DCF Methodology — Guide to discounted cash flow analysis
PE Ratio — Understanding the price-to-earnings ratio
Intrinsic Value — How to evaluate stock fair value

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P/E and DCF value TJX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.